That is definitely (and self-evidently) true! Of all managers who rate everyone on their team as having achieved the highest performance standard, what fraction of those cases do you think are subjectively “correct”? In my experience, it’s way, way, way under half.

Further, it’s rare for the managers giving the 100% top performance evaluation to individuals to be leading groups with high overall accomplishment/delivery. (Occam’s Razor suggests that it’s evidence of poor leadership to be squandering the ability and contributions of all these high-performers. An analog might be an MLB Manager with All-Star players at every position and turning in a 0.500 season; they should expect to be fired.)